Understanding the Contingency Approach: Models, Benefits and Application in Management

Contingency theory is one of the managerial theories that stress the importance of flexibility and resilience. The contingency approach suggests that there is no right model for leadership or organisation management. Hence, leadership differs from management depending on definite circumstances and conditions in an organisation. 

 

This article focuses on the contingency approach to management and leadership, outlining its importance and benefits. By the end, you will understand why contingency thinking is essential to the present-day manager and leader.

What is the Contingency Approach?

The contingency approach is a management theory which states that there isn’t a correct way to manage or lead. Rather, it implies that the right course of action is the one which is most appropriate to each environment of the case. 

Contingency approach definition: 

“It is defined as a way through which managerial practices are adjusted to fit specific circumstances of a particular situation.”

This approach is quite different from the classical management theories that argue for a standardised approach to management.

4 Key Contingency Approaches

In a bid to elaborate more on the contingency approach to leadership and management, the following are some recommended models. Here are four key contingency approaches widely recognised in management:

1. Fiedler’s LPC Contingency Model

The LPC (Least Preferred Co-worker) model is an analytical tool invented by Fred Fiedler which evaluates leaders according to their manner of interfacing and operating with their least preferred subordinate. It is used to predict the leaders as either task-oriented or relationship-oriented, and their efficiency is determined by how their style aligns with situational factors, like the structure of the task as well as inter- and intrapersonal relations among the members of the team. This model gives much focus on the notion of varying leadership behaviours regarding the environmental pressure.

2. Path-Goal Theory

According to Path-Goal Theory, leaders can guide the behaviour of their subordinates through defining how goals can be achieved and matching leadership behaviour with the requisite needs of the follower. Managers may assume varied behaviours; autocratic, affiliative, normative or constructive, based on the level of the task and the background of the subordinates. This approach shows a contingency thinking in management by adjusting the leader’s behaviours to match personal and organisational characteristics.

3. Situational Leadership Theory

First postulated by Paul Hersey and Ken Blanchard, this theory suggests that leaders adjust their style according to the level of followers’ willingness and ability. Managers use one of four approaches: authoritative, persuasive, consensual, or empowering, depending on the organisation’s responsiveness. The situational and contingency perspective demonstrates that leaders need to be responsive to enhance the onset of the team performance.

4. Systems Contingency Model

Here, organisational processes are developed with the systems contingency model approach whereby the impact of the market, competition, and technology is considered. They argue that organisations can maintain their success with extra-organisational environment entities. Leaders using this model appreciate that they and their strategies have to bend widely to conditions beyond.

4 Benefits of the Contingency Approach

Adopting a contingency perspective in management provides several significant benefits:

1. Flexibility and Responsiveness

The contingency approach is in fact one of the most prominent organisational theories that claims to provide flexibility to the management field on the other hand it offers the required instruments when coming across unpredictable circumstances or changes in organisations. This characteristic is important in organisations and operations that involve change and where adherence to planning may even hamper change.

2. Enhanced Decision-Making

By involving different considerations before the leaders make decisions, the contingency approach promotes decision-making. Leaders weigh the characteristics of the group as well as the organisational and outer context together with the internal culture before determining the correct power approach to be used in the management.

3. Increased Organisational Efficiency

Contingency approaches toward leadership makes work run more smoothly because of the variety of leadership styles that are appropriate for different circumstances. For example, if there are many officially prescribed and well-defined roles for the participants, it is easier to practice task-oriented leadership, while when relationship building is necessary, it is better to use a relationship-oriented approach.

4. Improved Employee Satisfaction and Engagement

The contingency approach in the management of organisations could be beneficial in terms of the satisfaction of employees. Leaders who apply positive models for change according to the needs of the workers will provide a favourable climate at the workplace that promotes high morale and productivity in the employees.

Applying Contingency Theory in Management 

Contingency theory in the context of management emphasises the need for various techniques to vary in corresponding to the situational variables. Contrary to other models, contingency approach to management is adaptable, insisting that managers should look at particularities of their organisations and employees before choosing the right approach to management. It provides organisational leaders better ways of responding to rapidly changing environments than could ever be accomplished through standard best practice and blueprint thinking.

By understanding the concept of contingency thinking at the management organisational level, the leaders can be in a position to better navigate situations, challenges and even make decisions that align to particular organisational goals and team needs. Situational and contingency thinking allows a manager to assess each situation on their own, allowing for management to impose organisation-wide solutions where necessary. This flexibility when applied in decision-making is especially useful in either multi–sector or organisations with often shifting operational methodologies.

Adapting Leadership Styles through the Contingency Approach

Whereas, with a contingency approach of leadership, the factor complementary to power is adaptability. Significantly, this form of leadership defines the leadership style based on a number of factors including type of work, and the people involved.For example, a leader might choose a positional or autocratic style when decision should be made as possible, or the situation requires the leader to make a decision immediately, while the democratic style might be benefited from a more participative style.

The contingency perspective of leadership supports the notion of the statement that there is no one right style that a leader should use. The latter include the climate and culture within the team, goals set by the organisation, and community forces when deciding on the kind of leadership to exercise. Through adapting its style to these situational requirements, leaders can improve interaction and effectiveness with their subordinates. This approach not only enhances work productivity but also motivates workers because they would feel valued as individuals.

Conclusion

The contingency approach appears to be highly relevant in addressing the challenges of the modern business environment. With this insight, this approach enables leaders to consider certain situations and correctly choose the management style that will be most effective. This model of management provides managers with sufficient opportunity to adapt to the internal dynamics of the team, responding to various changes that occur in the external environment, or motivating people. The contingency approach to management allows the manager to add an individual touch to the overall process of management. 

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Frequently Asked Questions

1. What is the contingency approach?

The contingency approach is defined as organisational management theory that admits, at its core, that there is no one correct way to manage effectively; it always depends on the peculiarities of the organisation in question.

2. What is an example of a contingency theory?

One of the most recognized examples is Fiedler’s LPC contingency model that divides leaders into task-oriented or relationship-oriented leaders based on their relation to the least liked co-worker.

3. What is the purpose of the contingency approach?

The purpose is to provide guidelines to the managers and the leaders to change their conduct depending on the context to improve the organisational outcomes and adaptability.

4. What is the difference between contingency and classical approaches?

While the classical approach has provided one view that should be followed in all development management situations, the contingency approach argues that different circumstances require correspondingly different treatment.